Abstract
From modest beginnings, when every brewery was locally oriented and small in scale, Canada’s brewing industry went through a prolonged period of consolidation through the mid-twentieth century. During this time, the larger, national brewing companies expanded through merger and acquisition, and increasingly standardized the products offered in markets across the country. More recently, a microbrewing renaissance emerged in the mid-1980s, which saw dramatic growth of new, small scale, craft brewers oriented principally to local markets again. The new microbreweries often invoke geography and place in their branding and marketing strategies, to emphasize their connection to their locations. This strategy is known as ‘neolocalism’, and it is evident that microbreweries are much more likely to use this strategy than the national brewing companies. This chapter documents some of the ways in which Canadian microbreweries use neolocalism to connect to place, and through an analysis of brewery and beer brand names, demonstrates the difference in tendency of microbreweries versus national brewing companies to do so. In addition, the response of the national brewing companies to the new competition from microbreweries reveals a new approach to merger and acquisition—one which embraces neolocalism and place-connection.
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Notes
- 1.
A brief comment on terminology: the terms microbrewery and craft brewery will be used frequently in this paper. In Canada, there is no nationally established definition of either term. While the definition of ‘microbrewery’ varies by province, the key feature is scale; as the name implies, microbreweries brew on a small scale. A threshold annual production of 60,000 hL is often used as the common defining capacity in Canada. The term ‘craft brewery’ is even less well established. It is not based on size alone, though craft breweries are indeed normally small in scale, or at least the beer is produced in small batches. Rather, the term craft brewery is generally used also to refer to the character of the beer and the method of production. Perhaps the term is best summarize by the author widely credited with having coined it: craft beer refers to beer produced by “a small brewery using traditional methods and ingredients to produce a handcrafted, uncompromised beer that is marketed locally” (Cottone 1986, p. 9). Operationally, this definition is difficult to apply, but without much controversy, it is accepted that the largest, national brewers in Canada are not craft breweries, while the small, local ones are. We might also add that, in general, craft breweries are independent businesses while the larger, national ones are now actually subsidiaries of global beverage corporations. As such, the author hopes the reader will accept this informal method of describing and differentiating breweries for the purposes of this paper.
- 2.
- 3.
At a panel discussion entitled “Can the Small and Microbrewer Survive?” held at the 1997 Annual Convention of the Brewers Association of America, Jim Koch, co-founder and chairman of the Boston Beer Company, stated: “What’s happening in the segment now is a lot of retrenchment, by people who expanded optimistically, and are now pulling back into their core areas of strength, typically geographical. These companies are dropping salesmen in remote markets and pulling back into core areas” (Modern Brewery Age 1997).
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Acknowledgements
There is no single source that lists the names of all breweries and their products in Canada. The inventory of names used here was drawn from numerous sources, including the membership of the Brewers’ Association of Canada and several online blogs. Only those breweries whose existence could be verified were included. For the names of products, an extensive search of the breweries’ own websites was conducted to identify as many individual brands as possible. Many thanks to Mr. Pieter Good for assistance with this job.
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Eberts, D. (2014). Neolocalism and the Branding and Marketing of Place by Canadian Microbreweries. In: Patterson, M., Hoalst-Pullen, N. (eds) The Geography of Beer. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-7787-3_16
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